Wells Fargo to sell at least $250 million noncumulative perpetual preferreds at 5.125%-5.25%

By Stephanie N. Rotondo

Phoenix, Nov. 13 - Wells Fargo & Co. is looking to issue at least $250 million of series O noncumulative perpetual class A preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 5.125% to 5.25%, according to a trader.

The preferreds will be issued as depositary shares representing a 1/1,000th interest.

When declared, dividends will be paid on the 15th day of March, June, September and December, beginning March 15, 2013. The stock becomes redeemable in whole or in part on Dec. 15, 2017 at par plus accrued dividends.

Additionally, the shares can be called in whole upon the occurrence of a regulatory capital treatment event, also at par plus accrued dividends.

The San Francisco-based bank will apply to list the new preferred shares on the New York Stock Exchange under the ticker symbol "WFCPO."

Wells Fargo Securities LLC is the bookrunner. Joint lead managers are Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and UBS Securities LLC.

Proceeds will be used for general corporate purposes.

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